CAPITAL BUDGETING CRITERIA A firm with a 14% WACC is evaluating two projects for this year’s capital budget. After-tax cash flows, including depreciation, are as follows:   Time                  0            1             2            3            4              5 Project A         -6,000   $2,000   $2,000   $2,000    $2,000     $2,000 Project B       -18,000   $5,600   $5,600    $5,600   $5,600      $5,600   d.Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR? e.Which calculation would you recommend in your evaluation—NPV or IRR? Why?

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Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.